Elon Musk recently stirred speculation during an investor call, hinting at a potential valuation adjustment for his artificial intelligence startup, xAI. The Tesla and SpaceX CEO expressed his intention to put a “proper value” on xAI, sparking rumors of a significant capital raise in the near future. The news was first reported by CNBC’s David Faber on the Faber Report.
Investor Call Sparks Speculation
Sources familiar with the call revealed that Musk did not explicitly mention a new funding round, but his emphasis on determining a suitable valuation for xAI led some to believe that a major capital raise could be on the horizon. Faber shared insights from the call, highlighting xAI’s current valuation at $80 billion and the potential for a substantial funding round in the works.
xAI’s Growth and Ambitions
xAI made waves in the artificial intelligence industry with the launch of its Grok chatbot in July 2023, positioning itself to compete with industry leaders like Anthropic and OpenAI. Following a merger with X in March, Musk emphasized the intertwined futures of xAI and X, combining resources to enhance AI capabilities.
One of xAI’s notable achievements is the rapid deployment of Colossus, a supercomputer cluster housing 200,000 GPUs, in just 122 days. The company’s focus on speed and innovation has propelled its growth in the AI sector, solidifying its position as a key player in the industry.